Given all the tax reforms being proposed under the Trump administration, many Americans are understandably wondering if they will be paying more or less in taxes next year. The answer is that if the GOP tax reform plans are passed, which are highly likely at this stage, then a lot of people will see lower tax effective tax rates in 2018 given increased in tax bracket income thresholds. If they don’t pass the then the published 2018 IRS tax brackets shown below will be in effect.

The standard deduction in 2018 will double to $12,000/$24,000 (single/married) under the GOP tax bill. The $4,150 personal exemption will be fully eliminated for 2018.

IRS tax tables (assuming Trump/GOP Tax reforms don’t pass)

2018 Federal Tax Rates and Marginal Tax Brackets

Tax Rate

Single

Married Filing Jointly

Married Filing Separate

Head of Household

10%

$0–$9,525

$0-$19,050

$0–$9,525

$0-$13,600

15%

$9,526–$38,700

$19,051-$77,400

$9,526–$38,700

$13,601-$51,850

25%

$38,701-$93,700

$77,401-$156,150

$38,701-$78,075

$51,851-$133,850

28%

$93,701–$195,450

$156,151-$237,950

$78,076-$118,975

$133,851-$216,700

33%

$195,451-$424,950

$237,951 -$424,950

$118,976-$212,475

$216,701-$424,950

35%

$424,951-$426,700

$424,951-$480,050

$212,476-$240,025

$424,951-$453,350

39.6%

over $426,700

over $480,050

over $240,025

over $453,350

Exemption

$4,050

$4,050

$4,050

$4,050

Std Deduction

$6,350

$12,700

$6,350

$9,350

Trump and House Republican Tax Brackets and Rates (superseded by Reconciled/Final GOP Bill)

House Republicans have released their detailed tax proposals and here is their 2018 tax table reflecting a consolidation of tax rates/brackets from seven to four (excluding 0% rate covered by the standard deduction). Note that 2018 IRS tax brackets (shown above) should be used for comparison as it is unlikely these new rates will be in effect for 2017 (filed in 2018):

Tax Rate

Single Filers

Married/Joint Filers

0% (Standard Deduction Threshold)

$0 to $12,000

$25,000

12%

$12,001 to $45,000

$25,001 to $90,000

25%

$45,001 to $200,000

$90,001 to $260,000

35%

$200,001 to $500,000

$260,001 to $1,000,000

39.6%

$500,001+

$1,000,001+

The standard deduction nearly doubles under the GOP/Trump plan, but the personal exemption and several itemized deductions have been reduced or eliminated. As further updates for 2018 come to light with new legislation, I will update the above table and related articles.

Trump and all his cronies can go straight to hell just like all those on Social Security who feels they are special and should not have to pay their fair share of taxes like other on retirement do. This whole tax thing is nothing more than a joke. It is a bigger joke than what Reagan did.